Molson Coors Final Project Written
Molson Coors
Alcoholic Beverages Industry, Team 1
Leah Black
Professor Shaked, FE449 12:30PM Section
Industry Information
-Make sure to add info about craft beer
-Shift away from beer and towards liquor
Key Industry Drivers
For beer, wine and liquor, demand from wholesalers is very important. Companies in this industry must work closely with wholesalers to properly promote their product and ensure shelf space at liquor stores. An issue that arises with wholesaling is state restrictions on distribution. In some states, the government controls the distribution and selling of spirits and can restrict companies from selling directly to consumers. Overall, this demand is expected to increase during 2013 providing an opportunity for breweries and distilleries.
Another industry driver is the price of coarse grain and wheat. These two commodities are key inputs for beer and spirits, and companies are subject to risk when prices rise. Many companies enter into contracts with suppliers, but can still be affected by price hikes when these contracts expire. The price of both wheat and coarse grains is expected to rise in 2013.
Disposable income is another key industry driver. During the recession, consumers had less disposable income and demand for drinks at bars and nightclubs decreased. However, disposable income is expected to increase in the next few years, with more consumers attending these establishments. An increase in disposable income also leads to higher margins for distilleries, because consumers are more likely to purchase premium liquors. Additionally, consumers will begin to eat at restaurants more frequently, which will also drive alcoholic beverage revenues higher.
Molson Coors1
Business Description and Company History
Molson Coors is a large multinational brewer of a diverse portfolio of brands, including Coors Light, Molson Canadian, Carling, and Staropramen. Molson Coors has also entered the craft and specialty beer
Alcoholic Beverages Industry, Team 1
Leah Black
Professor Shaked, FE449 12:30PM Section
Industry Information
-Make sure to add info about craft beer
-Shift away from beer and towards liquor
Key Industry Drivers
For beer, wine and liquor, demand from wholesalers is very important. Companies in this industry must work closely with wholesalers to properly promote their product and ensure shelf space at liquor stores. An issue that arises with wholesaling is state restrictions on distribution. In some states, the government controls the distribution and selling of spirits and can restrict companies from selling directly to consumers. Overall, this demand is expected to increase during 2013 providing an opportunity for breweries and distilleries.
Another industry driver is the price of coarse grain and wheat. These two commodities are key inputs for beer and spirits, and companies are subject to risk when prices rise. Many companies enter into contracts with suppliers, but can still be affected by price hikes when these contracts expire. The price of both wheat and coarse grains is expected to rise in 2013.
Disposable income is another key industry driver. During the recession, consumers had less disposable income and demand for drinks at bars and nightclubs decreased. However, disposable income is expected to increase in the next few years, with more consumers attending these establishments. An increase in disposable income also leads to higher margins for distilleries, because consumers are more likely to purchase premium liquors. Additionally, consumers will begin to eat at restaurants more frequently, which will also drive alcoholic beverage revenues higher.
Molson Coors1
Business Description and Company History
Molson Coors is a large multinational brewer of a diverse portfolio of brands, including Coors Light, Molson Canadian, Carling, and Staropramen. Molson Coors has also entered the craft and specialty beer